Computer Storage Solutions - A Rapidly Developing Field Dependent On Rising Worldwide Information Processing And Storage Needs

The computer storage industry manufactures tape, optical, and magnetic storage and retrieval devices for computer equipment. These products range from the common desktop computer floppy and hard disk drives to unique storage administration systems such as advanced tape library and autoloader systems used in large enterprise networks.

Demand for increased storage capacity and functionality has risen sharply, as microprocessors have grown faster, software applications require more computer resources , and network computing has become more of a standard. Attempts to augment processing power and offer users more features have made the typical new software application demand vastly more storage space than earlier versions. On personal computers, storage expectations have further grew and multiplied as a consequence of expanding multimedia features and content, such as DVD movies and downloadable music on the Internet. Meanwhile, corporate systems had to deal with escalating storage and processing needs from internal users, and additionally from the Internet.

Cargo values for computer storage appliances and equipment like tape libraries, which totaled $9.0 billion in 2000, fell to $8.2 billion in 2001. At that time, some 66 companies competed in the domestic market. In spite of the myriad forces stimulating demand for storage devices, the industry, like many computer hardware sectors, has been adversely affected by fierce price competition. Such pressures have prompted significant consolidation within the industry and have introduced cost cutting at several storage device companies. In conjunction with increased price competition, the market for storage devices was at the mercy of a weak economic climate in the early 2000s. This laid out challenges across virtually every product segment in the computer industry, as manufacturers faced reduced spending and assurance levels in both the consumer and corporate sectors.

The computer storage industry continued to deal with both challenges and opportunities related to storage outsourcing services, or storage service providers, or SSPs, at the beginning of 2000s. These remote services offer storage space and management tools that clients can simply connect to and use, enabling companies to avoid buying and maintaining storage hardware and software themselves. At the start of 2000s, the new SSP field was modifying how storage devices are applied and marketed. It also presented an opportunity for storage equipment manufacturers to branch into services. By 2001 telecommunication industry leaders like World Com and AT&T were involved in this sector. Worldwide, IDC, a leading consultant in technology intelligence and industry analysis, forecast spending on SSPs to increase from $150 million in 2000 to $10.5 billion in 2005, as reported by Computing Canada. This growth reflected a compound annual growth rate of over 134 percent.

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